Shanghai, May 17.
T the first meeting of the Public Utilities Committee of the S.M.C, appointed for the year 1940/1941, Mr. G, E. Mitchell was unanimously elected Chairman.
'The Committee membership is as follow::—Messrs, N. F. Allman, J. W. Carney, G. A. Haley, B, Kiang, J. H. Liddell, 8. Francis Liu, G. E. Mitchell, 1. Okamoto, T. K. Tsutsumi, and' Zurtin Zao.
The Committee gave careful consideration to an application dated April 11 from the Shanghai Waterworks Ca., Ltd., to increase the existing surcharge of 50 per cent. on its tariff of charges to 110 per cent, from June 1, 1940, and recommended approval of the application subject to the increased surcharge being applied to accounts in respect of consumption periods ending on and after June 17, 1940, and being subject to review at any time and in any! case prior to November 30, 1940.
The Committee also recommended that the company be invited to enter into conversations with delegates appointed by the Council with a view to exploring means whereby consum~ mers may be relieved to some extent of the heavy burden of providing the sterling dividends authorized under the company's franchise, of expenditure were framed on a conservative basis and that no allowtance was included to cover probable advances in cost of materials etc., oF for further anticipated increases in stam? pay and allowances, Any increase in revenue will therefore be required to offset additional expenditure, Revised Estimates support of its application the company forwarded revised estimat of revenue and expenditure for year 1940 based on exchange rates of 4d and U.S$0.06 to the Chinese dollar, which, while providing for substantially the actual demand experienced during 1999 show increases In expenditure due to increased wages and commodity prices, particularly for fuel and power. The company considers that while the trend of conditions affecting demand may be Fegorded as more favourable than that affecting expenditure, full recovery in demand has already taken place and therefore the increase an demand for 1939 over 1938 cannot be expected in 1940 and thut recent re-{urns support this assumption. The probabilities with regard to expenditure, for which no allowance been made in the revised estimates, appear to be further Increases commodity prices which will in turn Fender necessary some general ad-Justment in salaries apart from direct wages, The revised estimates show that, providing conditions existing at the date of the application are maintained, the surplus of revenue (with the existing 80 per cent. surcharge) over expenditure. will fall short by a considerable sum of the amount quited at an exchange rate of 44 to pay the dividends provided for under the company's franchise without mating any provision for accrued shortages of dividends amounting to £41,098:18:0 or for the appropriation io Feserve also provided for under the franchise, Supplementary estimate A tusther letter from the company dated May 7 was also submitted, stating that as the company's applica tion Wes Based on an exchange rate of 4d. andthe sumption that the Surcharge of 110 percent. applied {or would Become effective not later than "May "31, the recent further Aeeline in, exchange andthe later Sttective date of an increased our charge rendered the proposed increase insuefent, and it was proposed. submit supplementary estimates and tov'make application, for a. further increase inthe near fulure, The conclusion was arrived at, after lengthy: discussion and. examination tthe company's position. In con-Sldorable dotal, that. the provisions in the company's franchise. allowing for the framing of a tariff of charges $0. a8 10 provide, inter ality for the Payment of stipulated. dividends on the' company's sued. share capital, left the Committee no alternative but fo recommend the application tinder review for approval. Concern was, However, expressed by all members ever the effect-on the majority of Consumers of having to, provide for the payment of sterling dividends. was accordingly decided alo to' recommend. tothe Council that" the Seman be invite (0 eter Ino cone vervatons with delegates" appel By'the Council witha view to ex. ploring the possibilities of relieving Gonsumers. to" some extent of this heavy burden, These recommendations were approved by the Council at ity meet held on May 15, 1940. teas Dividend Requirements The company states that its directors are only too well aware that the present is perhaps an even less propitious time for increasing water rates than last November and while yet again they are prepared to pro-ose an increase which is substantial-less than that required to cover all of the various matters provided for In the franchise agreement, they Feel compelled to require that the revenue for the current year shall: be suMeient to produce a surplus approximating at least to current divid~ end requirements. They view. with the greatest concern any material increase in. the dividend shortages, which are already serious, Application Is therefore made to increase the surcharge from 80 per cent. to 110 per cent, from June 1, 1040, in order {to provide for the franchise dividend requirements for 1940, Members were informed that it was matter of considerable dimeulty, having regard to prevailing con-Aitions, to prepare at this stage reasonably accurate estimates of expenditure and revenue for the year. Consequently the company's estimates had been prepared on the basis of its known experience, no allowance Naving been made' for probabilities was observed that the estimated increase in expenditure for 1040 was necessitated by the considerable increase in prices particularly in respect of fuel and power, while economies in stating had been effect ed, 'The number and basic pay foreign employees showed a steady decline between August, 1998, and 'March, 1940, and the pay' and allowtances of these employees was. substantially the same as in September, 1939, The number of Russian and Chinese employees remained the same as in August, 1989. As regards re-Venue, It would appear on the basis fof the returns for the first quarter of 1040 that actual receipts will exceed ihe estimated amount by some 4 per cent, On referring this matter tothe company's officials an assur= nce was obtained that the estimates Japanese Residents?
Corporation President Shanghat, May 18, The Japanese Consulate-General yesterday "approved the choice of Mr. Chiyosalu Fukuda as president of the Shanghai Japanese Corporation, the Mainichi" reported.
Mr. Fukuda, who has been acting president of the Corporation, was formally named to its presidency on May. 11 at a heated meeting which led to the withdrawal of members belonging to the minority Mingi Club which opposed the choice.
Text read from the printed page and cleaned; old type leaves the occasional error.